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Mine or Not? The Question of Ownership of Minerals and Mineral Rights

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Abstract

Firstly, in the context of mineral ownership a distinction needs to be made between the ownership of the minerals per se, the ownership of mineral rights and mining licenses. Questions regarding the ownership of land are dealt with infra in Sect. 5.4.

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Notes

  1. 1.

    Badenhorst et al. (2014), p. 292.

  2. 2.

    Mostert (2012), p. 1.

  3. 3.

    Southalan (2012), p. 43.

  4. 4.

    Southalan (2012), p. 42.

  5. 5.

    Supreme Court of South Africa (Appellate Division), Trojan Exploration Company (Pty) Ltd and Another v Rusteburg Platinum Mines Ltd and Another.

  6. 6.

    Mostert (2012), p. 7.

  7. 7.

    Mostert (2012), p. 1.

  8. 8.

    North Gauteng High Court South Africa (2014), p. 29.

  9. 9.

    Supreme Court of South Africa (Appellate Division), Trojan Exploration Company (Pty) Ltd and Another v Rusteburg Platinum Mines Ltd and Another.

  10. 10.

    Southalan (2012), p. 41.

  11. 11.

    Australian Industry Commission (2007), p. 10.

  12. 12.

    Australian Industry Commission (2007), p. 10.

  13. 13.

    Kirk (2007).

  14. 14.

    Princeton (2014).

  15. 15.

    Oxford Dictionary (2014).

  16. 16.

    Section of the 8 MRA 1989 specifies: “(…) Gold on or below the surface of land is the property of the Crown. Coal on or below the surface of land that was acquired by the Crown (…) and subsequently alienated in fee simple by the Crown is the property of the Crown; [Coal] on or below the surface of land (other than land referred [supra]) is the property of the Crown except where that land was alienated in fee simple by the Crown before 1 March 1910 and the grant of that land did not contain a reservation to the Crown of the property in that coal.

  17. 17.

    Williams (2003).

  18. 18.

    Court of Exchequer Chamber, The Case of Mines.

  19. 19.

    The Government of New South Wales (2013).

  20. 20.

    Section 5 of the Coal Acquisition Act 1981 (NSW): “(1) All coal that, but for this Act, would be vested in: an instrumentality or agency of the Crown, or any person other than the Crown, is vested in the Crown freed and discharged from all trusts, leases, licenses, obligations, estates, interests and contracts.”.

  21. 21.

    Mostert (2012).

  22. 22.

    Mostert (2012).

  23. 23.

    Constitutional Court, Agri South Africa v Minister for Minerals and Energy.

  24. 24.

    Mostert (2012), p. 7.

  25. 25.

    Majoni (2014), p. 23. North Gauteng High Court South Africa (2014), para 23.

  26. 26.

    North Gauteng High Court South Africa (2014), para 24.

  27. 27.

    Supreme Court of South Africa Appellate Division, Trojan Exploration Company (Pty) Ltd and Another v Rusteburg Platinum Mines Ltd and Another.

  28. 28.

    North Gauteng High Court South Africa (2014), para 29.

  29. 29.

    North Gauteng High Court South Africa (2014), para 28.

  30. 30.

    Mostert (2012), p. 55.

  31. 31.

    The Supreme Court of South Africa, Minister of Minerals and Energy v Agri SA, para 62.

  32. 32.

    Badenhorst et al. (2014), p. 289.

  33. 33.

    The Supreme Court of South Africa, Minister of Minerals and Energy v Agri SA, para 63.

  34. 34.

    The Supreme Court of South Africa, Minister of Minerals and Energy v Agri SA, para 63.

  35. 35.

    North Gauteng High Court South Africa (2014).

  36. 36.

    North Gauteng High Court South Africa (2014), p. 51.

  37. 37.

    North Gauteng High Court South Africa (2014), p. 51.

  38. 38.

    North Gauteng High Court South Africa (2014), p. 51.

  39. 39.

    North Gauteng High Court South Africa (2014), p. 51; The Supreme Court of South Africa, Minister of Minerals and Energy v Agri SA, p. 83.

  40. 40.

    North Gauteng High Court South Africa (2014), p. 51; The Supreme Court of South Africa, Minister of Minerals and Energy v Agri SA, p. 83.

  41. 41.

    This section of the constitution has been further elaborated by the Constitutional Court of South Africa in the case First National Bank of SA Limited t/a Wesbank v Commissioner for the South African Revenue Services and Another.

  42. 42.

    North Gauteng High Court South Africa (2014), para 74.

  43. 43.

    Article 332 of the Constitution of Colombia states: “El Estado es propietario del subsuelo y de los recursos naturales no renovables, sin perjuicio de los derechos adquiridos y perfeccionados con arreglo a las leyes preexistentes.

    [The State is the owner of the subsoil and of the natural, non-renewable resources, without prejudice to the rights acquired and established in accordance with prior laws.].

    Article 6 of the Constitution of Colombia further states that: “La propiedad estatal de los recursos naturales no renovables es inalienable e imprescriptible.

    [The State’s ownership of non-renewable natural resources is inalienable and non-transferable]. Transfer of the ownership of minerals or mineral rights is not possible.

  44. 44.

    Article 5 of law 685 of 2001 (Mining Law 2001) states: “Los minerales de cualquier clase y ubicación, yacentes en el suelo o el subsuelo, en cualquier estado físico natural, son de la exclusiva propiedad del Estado; (…) Quedan a salvo las situaciones jurídicas individuales, subjetivas y concretas provenientes de títulos de propiedad privada de minas perfeccionadas con arreglo a las leyes preexistentes.

    [Minerals of any type and place, located in the soil or subsoil, in any natural physical state, are exclusively owned by the State; (…). The individual, subjective and concrete legal situations which come from titles of private mining ownership granted according to pre-existing laws are exempted.] According to article 28 Mining Law 2001 those private mineral rights are transferable, e.g. can be bequeathed.

    Article 29 Mining Law 2001 determines that: “Los derechos de propiedad de los particulares sobre el suelo y subsuelo mineros sobre las minas que hubieren sido reconocidos y conservados en los términos, condiciones y modalidades establecidas en la Ley 20 de 1969, el Decreto 2655 de 1988 y la Ley 97 de 1993, se consideraran extinguidos si los interesados suspenden la exploración explotación por más de doce meses continuos, sin causa justificada constitutiva de caso fortuito fuerza mayor.

    [The ownership rights of private persons over the mining soil and subsoil or over mines that would have been recognized and kept in the terms, conditions and means established in Act 20 of 1969, Decree 2655 of 1988 and Act 97 of 1993, will be considered extinguished if the holder of the private mineral title suspend the exploration or exploitation for more than twelve consecutive months, without any reasonable justification of unforeseen circumstances or force majeure.].

  45. 45.

    Molina (2014), p. 107.

  46. 46.

    Molina (2014), p. 107.

  47. 47.

    Molina (2014), p. 108.

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Roeder, R.W. (2016). Mine or Not? The Question of Ownership of Minerals and Mineral Rights. In: Foreign Mining Investment Law. Springer, Cham. https://doi.org/10.1007/978-3-319-31217-0_4

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